The government is working to improve the efficiency of administrative procedures through digitization. Changes should be made to a system in which IT vendors have dominant positions, in the hope that it leads to higher-quality administrative services.
The Fair Trade Commission (FTC) has released a report on its survey of information systems ordered by the central and local governments. The report cites the problem of "vendor lock-in," through which a particular contractor receives orders for a long period of time for such reasons as ensuring the stable operation of IT systems.
According to the FTC survey, about 99% of central and local governments renewed contracts with vendors when modifying or updating their IT systems. Almost half of the respondents said that only their existing vendors could grasp the details of their systems.
In some cases, vendors set specifications that prevented other companies from modifying systems or refused to transfer data to other companies. Once vendors receive orders to build a system, they can earn money through maintenance and repairs, and the companies may be reluctant to give up the position.
Such actions may violate the Antimonopoly Law. They could also lead to contract prices remaining high and prevent the performance of systems from being improved.
The disadvantage is ultimately suffered by the people. It is important to change contracts and relationships in which vendors have a dominant position and to create an environment where new contractors can propose better services.
There are also issues on the administrative side. Because of the lack of personnel who are familiar with IT systems, it is said that there are many cases where governments leave everything up to vendors, putting them at the mercy of such companies. The lack of human resources is especially noticeable in small local governments.
To improve this situation, it is important for the Digital Agency to fulfill its function as a control tower and take the lead in building systems for public offices. The FTC report also calls for the implementation of training for government personnel and the creation of manuals.
In March, the Digital Agency will have been in operation for six months. It is currently working on unifying the systems of central and local government and promoting the use of My Number personal identification cards.
The novel coronavirus pandemic has highlighted the slow pace of digitization in Japan. It is hoped a system will be created that can serve as a one-stop-shop for procedures such as moving house, death notification and inheritance, so that people can experience convenience.
Digitization is not only about unifying systems, but also about changing the mindset of government staff and the way they work. Efforts should also be made to eliminate the divisions among ministries and agencies and the lack of cooperation with local governments.
There have been a number of cases where hospitals have been hit by cyber-attacks and electronic data has become unusable. There are also cases of repeated system failures, such as at Mizuho Bank.
It is essential to ensure the security of computer systems so that the public can use them with confidence.
-- The original Japanese article appeared in The Yomiuri Shimbun on Feb. 19, 2022.
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